Seeking pleasure or avoiding pain: Influence of CEO regulatory focus on firms' advertising, R&amp;D, and marketing controversies

Kashmiri, Saim; Gala, Prachi; Nicol, Cameron Duncan

doi:10.1016/j.jbusres.2019.08.022

Cited by 41 publications

(40 citation statements)

References 81 publications

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“…Therefore, companies targeting DT consumers could focus on advertising and social media content displaying material objects rather than social objects or experiences. While this research does help to identify consumers, it can further be extended to noticing and improvising behaviors in salespeople (Beeler et al , 2020) and in the upper echelons (Kashmiri et al , 2019) as their personalities can further influence marketing outcomes.…”

Section: Managerial Implicationsmentioning

confidence: 99%

Dark triad-consumer behavior relationship: the mediating role of consumer self-confidence and aggressive interpersonal orientation

Blair

Gala

Lunde

2022

JCM

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Purpose This study aims to investigate the consumer behavior of the Dark Triad (DT) personality traits. It investigates the sequential mediating role of consumer self-confidence and aggressive interpersonal orientation in the relationship between the DT personality traits (i.e., narcissism, psychopathy and Machiavellianism) and consumer behavior. Design/methodology/approach Using identity theory as a theoretical framework, the authors develop and assess a model linking the DT personality traits to consumer behavior, using two products: a watch and restaurant menu items, in different experimental settings. Findings Results from the two studies that surveyed consumers show that individuals with the DT personality traits have a positive significance of consumers’ attitudes, intent to recommend to others and purchase intentions, regardless of hedonic or utilitarian products. Further, consumer self-confidence mediates the DT–consumer behavior relationship, and this relationship is sequentially mediated by aggressive interpersonal orientation of the consumer. Research limitations/implications Consumer behavior researchers and marketing managers will have a better understanding of who DT consumers are and the variables associated with their consumption attitudes and intentions. This understanding allows marketers to focus on promotions to boost consumer self-confidence and aggressive interpersonal orientation of these DT consumers, which will increase their purchase intentions. Future researchers could replicate the results beyond an experimental design to improve the external validity of the findings, among other future research opportunities. Originality/value Our findings highlight the underlying reasons behind dark triad consumption behaviors. This furthers our understanding of dark triad consumers using identity theory as our theoretical framework.

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Section: Managerial Implicationsmentioning

confidence: 99%

Dark triad-consumer behavior relationship: the mediating role of consumer self-confidence and aggressive interpersonal orientation

Blair

Gala

Lunde

2022

JCM

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“…Finally, our study also contributes to an understanding of how CEO compensation may affect the relationship between CEO regulatory focus and firm R&D. Previous research is unclear regarding the influence of compensation on the relationship between CEO regulatory focus and risk taking (Gamache et al, 2015; Kashmiri et al, 2019; Wowak & Hambrick, 2010). We offer evidence for the differential effects of CEO bonus and salary on the relationships between CEO regulatory focus and R&D increase.…”

Section: Introductionmentioning

confidence: 65%

The effect of CEO regulatory focus on changes to investments in R&D

Scoresby

Withers

Ireland

2021

J of Product Innov Manag

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Research and development (R&D) is a key contributor to organizations’ pursuit of innovation. In turn, CEOs can influence important decisions related to changes in R&D spending—the kind of spending with the potential to lead to innovation. We seek to understand the motivation and conditions under which CEOs may influence R&D spending changes. Drawing on regulatory focus theory, this study investigates how CEO motivation affects changes in firm R&D spending. We explore the effect of CEO promotion and prevention foci on yearly R&D increase. We use a panel dataset of 688 S&P 1500 firms to test our hypotheses. Our findings suggest a negative relationship between CEO prevention focus and R&D increase, while CEO promotion focus produces no meaningful effect. We further test CEO compensation as a moderating mechanism, testing both incentive and fixed CEO compensation. We find that incentive compensation negatively moderates the relationship between CEO promotion focus and R&D increase, and positively moderates the relationship between CEO prevention focus and R&D increase. Additionally, CEO fixed income negatively moderates the relationship between CEO prevention focus and R&D increase. Based on these results we discuss theoretical implications of our findings, including differing effects of CEO regulatory focus on firm risk‐taking behavior and how compensation packages may alter those effects. We further discuss the practical necessity for boards of directors to understand both the R&D goals of an organization and the individual motivational orientation of CEOs when crafting compensation packages.

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“…Indeed, Atuahene-Gima and Ko (2001) find that higher risk-taking propensity among top executives enable employees to keep up with changing technologies, making them more innovative. Similarly, firms whose CEOs have greater promotion (vs prevention) focus have been found to demonstrate more risk-taking, innovative and proactive behaviors with such firms having higher levels of advertising and R&D intensities (Kashmiri et al, 2019) and greater proclivity to undertake acquisitions (Gamache et al, 2015). Scholars of EO and agency theory have also found that business executives' willingness to take risks positively impacts the risk-taking orientation of their firms (Wiklund and Shepherd, 2003;Wiseman and Catanach, 1997).…”

Section: Ejm 567mentioning

confidence: 99%

Exploring the dark side of integrity: impact of CEO integrity on firms’ innovativeness, risk-taking and proactiveness

Gala

Kashmiri

2022

EJM

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Purpose This study aims to examine the effect of chief executive officer (CEO) integrity on organizations’ strategic orientation. The authors propose that CEOs who have high degrees of integrity tend to negatively influence each of the three core dimensions of entrepreneurial orientation (EO) – innovativeness, proactiveness and risk-taking. They also argue that this impact of CEO integrity is likely to be stronger for overconfident CEOs and the CEOs with high power. Furthermore, this negative relationship is expected to attenuate when the firm has high customer orientation and when the CEO is compensated with high equity-pay ratio. Design/methodology/approach Seemingly unrelated regression analysis was conducted on panel of 741 firm-year observations of 213 firms across 2014–2017. CEO integrity and each of the three dimensions of EO were measured using content analysis of CEOs’ letters to shareholders. CEO power was measured using CEO stock ownership and CEO duality. CEO overconfidence was measured by using options-based measure. Customer orientation was measured by using content analyses on annual reports. CEO equity-pay based ratio was measured as sum of value of stock and option awards divided by CEO’s total compensation. This study considered alternative measures and performed treatments for potential endogeneity, sample selection bias and outliers. Findings The research findings conclude that organizations with CEOs who have high integrity tend to have lower levels of all sub-dimensions of EO – innovativeness, proactiveness and risk-taking. Further, the results indicate that the negative effect that CEO integrity has, affects one of its dimensions – proactiveness, such that the relation is strengthened when the CEO has high power and is highly overconfident. This negative effect weakens when the CEO is compensated with high equity-pay ratio. The results also indicate that the negative effect of integrity and innovativeness and risk-taking weakens when the firm has high customer orientation. Research limitations/implications The research contributes to upper echelon theory literature by adding to the discussion of how business executives’ psychological traits map onto firm behavior. This research also finds common ground between literature on innovation and upper echelons, contributing to awareness about the drivers of firms’ EO. Practical implications This research addresses the question of firm relation to EO by highlighting that firms’ EO is also shaped by the psychological traits of their CEOs and the interaction of these traits with CEOs’ cognitive biases. Thus, board members of firms led by CEOs with high integrity can limit CEO’s risk-averse behavior by focusing on their training and by creating incentive systems. It is also advantageous for CEOs to understand that integrity is a double-edged sword, thus leveraging the strengths of their integrity, while simultaneously using tools such as training to diminish its negative aspects. Originality/value This paper fulfils a twofold identified need to: study the antecedents of each of the three dimensions of EO, not limited to corporate governance; and unearth the counterproductive behaviors associated with bright traits that make up their dark side

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Seeking pleasure or avoiding pain: Influence of CEO regulatory focus on firms' advertising, R&D, and marketing controversies

Cited by 41 publications

References 81 publications

Dark triad-consumer behavior relationship: the mediating role of consumer self-confidence and aggressive interpersonal orientation

Dark triad-consumer behavior relationship: the mediating role of consumer self-confidence and aggressive interpersonal orientation

The effect of CEO regulatory focus on changes to investments in R&D

Exploring the dark side of integrity: impact of CEO integrity on firms’ innovativeness, risk-taking and proactiveness

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